In pre-market trading on Thursday, Carvana Co.'s (CVNA) stock price plummeted 10.67%, despite the online used-car retailer reporting record profits for 2024. The sharp sell-off was driven by investor concerns over the company's plans to raise $1 billion through a stock offering and an "at-the-market offering" program, which could lead to equity dilution.

Carvana had reported better-than-expected fourth-quarter results, with revenue of $3.55 billion and adjusted EBITDA of $359 million, surpassing analyst estimates. The company achieved a remarkable milestone in 2024, reporting record net income of $404 million, marking it as the most profitable public automotive retailer in the U.S. based on adjusted EBITDA margin.

However, despite this strong performance, investors were rattled by the potential equity dilution from the planned stock offering and "at-the-market offering" program. Additionally, Carvana's revenue per vehicle sold dropped 4.5% year-over-year, raising concerns about sustaining its growth and profitability as it scales up operations.